tv Squawk Alley CNBC December 5, 2016 11:00am-12:01pm EST
for the administration to try to make a stamp on that project, even though the trump administration is expected to overturn it. that shows you that people think donald trump is going to get into office and he is going to start to make the changes that will move this industry. carl? >> all right, jackie, thank you very much. that's a big story. good morning, it is 8:00 a.m. at amazon headquarters in seattle, 11:00 a.m. on wall street, and "squawk alley" is live. good monday morning, welcome to "squawk alley," i'm carl
quintanilla, kayla tausche, john ford joining me. roger mcnamee, good morning to you. first up this morning, donald trump taking to twitter over the weekend, reiterating his threats to u.s. companies considering moving production and jobs overseas. "any business that leaves our country for another country, fires its employees, builds a new factory or plant in the other country and thinks it will sell its product back in the u.s. without retribution or consequences is wrong." the president-elect calling for a 35% tax on companies who relocate outside the u.s. promises like these sure to have an affect on equity markets, as well. joining the conversation is samantha, great to see you this morning, welcome back. roger, first let's get your take on what this means for business at large. how much are we discounting into these tweets real policy and how much of it now is bluster? >> i would make the assumption that it's all bluster. we have only one data point to
work from, the carrier transaction, where trump promised to save 2,000 jobs. he saved fewer than half the jobs and wound up bribing the company with $7 million worth of tax benefits, so to my mind this is an attempt, i think, to neutralize what was a really, you know, just a completely empty gesture relative to carrier, so my personal viewpoint as an investor, you have to ignore everything he says and just watch what he does. >> samantha, is that how it's going to work? >> i think there is a difference between the campaign rhetoric, which we might still be getting a bit of, versus the rhetoric when he takes office, so the way we're looking at it is overall fiscal stimulus, which we know we're going to get, is good for the markets and favors equities over fixed income. we'd be focusing more on the asset allocation implication on this than aspects of the tax policy. >> last hour we heard 70% of the
company sales come from outside the u.s., so it's not realistic to think that we would not have employees outside the country. is the onus on companies to actually now show the administration and show the public exactly whom they are selling to and exactly where their customer is at the end of the day? >> i think really amazing u.s. companies by their very nature are global companies, so there is an aspect to that, you're going to have production overseas. we know 50% of s&p 500 revenues come from abroad, so they are contributing to those companies, as well. i think we pivot back to that part of it, that's a positive, something the market's latching on to. >> samantha, how much danger is there here that the market's not taking the president-elect seriously or literally? i mean, before the election it seemed like there was all this, you know, pro clinton, antitrump trade and now the market is saying he's not really going to do this stuff. is there a danger that we start
to see meat on the bone with these policies the market is going to have a long way to go in order to react? >> i think there's two aspects to this. first of all, the president operates in an ecosystem of congress, we have american institutions that we know are going to keep up in terms of keeping the way things are in check and with respect to the market, the market always grinds along. american business keeps on keeping on, so in some sense the strength of the u.s. expansion that president-elect trump is coming into, it's still whole. we don't think any policy is going to be able to really derail that. >> is that true, roger? >> i really hope samantha is right. i fear, and i think the smart money is going to bet that she's not. i look at it this way, which is paul ryan has an agenda that starts with dismantling the social safety net, beginning with medicare. that's a tremendously disruptive
move. they are clearly going to try to make some major changes to aca, the health care system. and, you know, i look at all that. the notion that this next period is going to be normal from a market perspective, i think, is very, very unlikely. i really hope samantha is right, but that's not where i'm betting or where the market will bet once the new president is inaugurated. >> yeah. that's going to be -- that's a deep, deep debate we will have to have another time over several shows. samantha, good to see you. >> or a cocktail. >> meanwhile, amazon, roger, is taking e-commerce to a whole new level, announcing amazon go, an in-store shopping experience with no registers or checkout lines. instead, users check in using an app, then machine learning sensors, like those found in driverless cars track what shoppers put into their carts. you are then billed when you leave the store. viewers writing in saying they are not the only ones with this
sort of in the planning stages, roger, but how much of a revolution is this? >> well, you know, i think this is part of a continuum that began a number of years ago when folks like home depot and cvs and albertsons, walmart, have experimented with self checkout and that's been a mix experience. i think the most compelling consumer experience was the one at home depot. unfortunately the technology was then exploited by hackers to get access to all of their corporate accounts. so that didn't work out so well. these things have all had rough moments, and the consumer experience has been everywhere from fantastic for the person who otherwise would have been in line for a long time, to just dreadful. and i don't think that it's been as good for the companies as they'd like to think. amazon's model, which appears to be a closed system, the whole thing is controlled by them, is way more consumer friendly, so i hope it works. i'm not going to assume it's going to move the needle much
more amazon, because amazon is really big and really successful and i think moving the needle for them is hard, but i think this is another example of amazon, you know, really pushing the envelope in really interesting ways. i think this is -- i like this better than dot and some of the other things they are doing. >> roger, this is john. so if we assume maybe the store of the future looks something like this, what does this say about the impact? so get rid of checkout lines, maybe that gets rid of some employees needed in the store, maybe it just reassigns those employees to a different location. that's the first thing. the second thing, this reminds me of something the apple stores have had for a couple of years where you can use your phone on the wifi network to check yourself out. but when i go into an apple store now, i don't have time to actually use the app before an employee comes and offers to help me check out. i wonder if that's an indication maybe that process, maybe from a loss of wages perspective doesn't work so well? >> well, john, i think that's a
great question. the early results from self checkouts suggest that, in fact, self checkout works in a relatively narrow set of circumstances with today's technology. amazon's moving the technology forward. in principle it should enlarge the number of cases where it works, but the reality is, having human beings in the retail experience is actually one of the more positive things for many retailers. i mean, imaginativeativimaginae human beings are really a positive part of the experience. there are other circumstances in grocery stores might be an example, where it's a mixed blessing. so i don't expect this to take over the world. doesn't seem like an earth shattering thing. >> roger, the last time i tried to use self checkout, tried to use a box of kleenex, it was so light that the register and bag never registered i had anything in there. there's a lot that amazon has to
get right for this to work and the consumer doesn't normally think of amazon as a grocery store or deli-type store. what's the risk that their first experiment with this goes wrong? >> karla, i watched the video for this, which seems to imply it works the way the hotel refrigerators work, where when you take out the item from the fridge, automatically registers the thing coming out, so looks like the stores are going to be capital intensive. may be they found some way around that, but i do agree the shrinkage issue in cvs and albertsons have had a hard time with shrinkage. whereas what amazon is doing, they are capturing the thing just by taking it off the shelf. that should work better on that, but as you point out, i think the number of retail experiences where that's going to fit, just initially be quite limited, but we'll see. i'm just glad they are doing it, because i think variety is a
cool thing. i think experimenting really does matter. i do think that the employment impact is going to be something. hopefully not terribly huge, because i think what it will actually show as a cvs thing has shown, humans actually are a really positive part of retail. >> in specific instances i think people get your point. finally, roger, concerns over espn sub numbers weighing on disney. rbc saying they should consider spinning off to create more shareholder value. they talk about a spin, they talk about potentially finding a buyer, live sports, roger, has become not a crown jewel anymore, but a liability when you compare it to movies and parks and products. do you agree? >> i look at this and i go, my gosh, talk about, you know, this has been the anchor or the most positive part of disney for a long, long time. but the world has, in fact, changed.
and now the leagues are in charge of their own broadcasts and that makes espn's role a lot less valuable than it was before major league baseball figured out how to present all of its games directly to fans, and i think football's declined. who knows if it's temporary or permanent, but if it's permanent, espn's outlook is less interesting than it was. one thing i can tell you absolutely for certain, if this deal happens, it would be great for the investment bankers. it will certainly be fun to watch. i look at this and go, it does really speak to how things have changed in the television industry, that sports, which really drove the cable package is, in fact, its loss of influence is allowing unbundling and over the top stuff to really take off and i think espn's going to be harmed by that. >> certainly nailed it there. not the way we used to think of it, that's for sure, in the whole ecosome.
good one, roger, see you next time, thanks. when we come back, inside look at biotech's latest frontier. we'll go live to the american society of hemtology conference. markets nearing a close in italy and europe, the latest on that historic referendum and its failure. later on, david fabers talking to thl scott sperling. "squawk alley" continues in a moment. generosity is its own form of power.
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the american society of hematology conference is bringing together the brightest in biotech, so let's get over to our own meg terrell with an exclusive interview. meg? >> john, thank you so much. joining us now is the new ceo of celgene, mark alas, thank you for joining us. new since march anyway. this conference is huge, you have your almost $7 billion dollar drug, biotech companies here, maybe not here, but with data. what's the most exciting thing about this conference? >> the totality of our presence here. we have 300 abstracts of original research, 150 were selected for oral presentation. you know, that's the highest level of peer review that we could have, so a big presence, a lot of momentum, then, of course, it cuts across a number of cancers, high yo low ma, leukemia, nonhodgkin's limymphl,
so when you think about innovation, the data we're presenting is practice changing. >> one partner, of course, in the news recently is immunotherapy, you have a big partnership you forged about a year ago making an investment in the company, as well as this technology. what can you tell us about the future of that technology? >> well, there are two partnerships we should talk about. juno, as you mentioned, but also our partners with bio. let's take juno to start with. it's a ten-year deal to really work with some of the best scientists in the world about t-cell biology. the start of that relationship is the program that you mentioned. this is a highly effective way of dealing with a patient's leukemia and, in fact, using their own immune system to treat their leukemia. there's been toxicity to keep it in clinical trial, but 90% of
patients are going to complete remission with no other options for care. with that there is toxicity we have to deal with and understand, but we're writing the rules how this is going to work. and when you have efficacy like this, the safety side will work its way out. we have other products with juno advancing. with respect to bluebird bio, we have a different process happening. the program is high owe llama and is exclusive to myoloma. in that context, you have incredible results, 100% response rate, but very, very early and importantly, very little toxicity. i think it matters which disease, it matters which process and target. >> i also want to ask about a trump administration, a lot of people speculating he will be able to bring back overseas cash. i understand you have almost 5 billion of cash overseas. what would you do with that if
you had a tax holiday? >> thank you. by the way, we're very excited about this pro innovation corporate tax reform environment. i think the industry at large is excited about the opportunity to think about after decades of wondering about corporate taxes, what we can do. and you mentioned our balance sheet. we do have a lot of cash offshore. we thought a lot about that. we have a board meeting where we're going to talk with our board about strategies of what to do. i think when you think about our corporate strategy, it aligns nicely with the idea we want to accelerate and build the company, and in an environment where cash is more freely available for strategic transactions and investment, this is a window where we're very excited about what those opportunities might look like. >> so looking at potential purchases or more partnerships? >> i think it's both. i think we think about later stage assets, proof of concept phase two or later stage phase three commercial ready assets, we're excited about that. we've been very aggressive over the years to look at those type
acquisitions that fit into our strategic franchises, oncology, hematology, and, increasingly, immunolo immunology. early partnerships is what we're known for. we look for science wherever it is and build a complement with our own internal engine, so we're looking from end to end, we're going to follow the science and build the company. >> just about out to time, but can't let you go without asking about drug prices. some folks expect less pressure, do you expect that price and pressure to alleviate? >> the economics are unchanged. didn't matter whether mrs. clinton or mr. trump won, the ethics or health care around the world are the same. we see this environment as construct i, positive, and opportunistic. celgene in particular with high innovation and high cost products presenting huge value to society, we see this as an enormous opportunity to communicate effectively with all stakeholders, but especially with trump administration. >> mark, thank you so much for
joining us. >> you're welcome, thank you. >> back over to you guys. >> thank you, meg, important insights there on innovation and possible tax reform. still to come, as amazon looks to get rid of registers, another company is looking to revolutionize them. first, live to rome following the results of italy's historic referendum. "squawk alley" will be right back. [engine revving] ♪ ♪ is it a force of nature? or a sales event? the season of audi sales event is here. audi will cover your first month's lease payment on select models during the season of audi sales event.
italian prime minister matteo renzi losing the referendum vote. renzi says he will resign following the defeat. julia is live in rome with all the latest. julia, yet another win for populism in the west? >> reporter: hey, carl. well, the honest answer is yes and no. let me explain, there was clearly an antiestablishment, antiprime minister renzi vote last night, but there are subtleties and they are very important. remember the thing about this referendum is, a yes vote last night could ultimately have made
it easier for their five star movement, the populist party here, to get into power. a lot of people i spoke to over the last few days have told me they voted no to prevent that, so we did have an anti-prime minister renzi vote, but also an antipopulist vote, and i think this is the silver lining we shouldn't miss. let me bring you up to speed. 90 minutes away now from prime minister renzi's final cabinet meeting. he'll then present his resignation to the president. most likely outcome here is the president will accept. all sorts of names being thrown into the ring here. the most popular one is the country's current finance minister. that would be the most positive for risk sentiment in italy. the most positive for the banks, too. quick checks on the banks, we're off the lows here, down less than 2.5%.
guys? >> julia chaterly in rome, we'll be checking in with you later on. not just italy, seema mody has that at hq. hey, seema. >> carl, it is a very interesting session indeed in europe with stocks there outside of italy moving higher and shaking off those early session jitters. this despite matteo renzi's defeat and the rejection of the constitutional reform, which does introduce a new bow to political uncertainty across europe and would likely embolden this populist antiestablishment view like the five star national front and northern league, the two populist parties in italy. but not to mention other leaders across europe that hold the antiestablishment view, including marine le pen, who has welcomed the italian referendum result saying after brexit and the italy no vote, it adds a new people to the list of those who would like to turn their backs on what she calls absurd
european policies which are plunging the continent into poverty. but a very different story in austria, which held its presidential election over the weekend. the center right leader alexander van der bellen defeated the far right candidate norbert hofer. van der bellen called the vote pro european. etx is higher by .8. all these political developments are coming ahead of the european central bank meeting on thursday, where the council will discuss the need for further stimulus and the consensus is for mario draghi and his council to extend quantitative easing for europe by six months. we'll have to see if the conversation turns from politics back to central bank policy, which has been the key driver behind european asset sets. >> all right, thank you so much, see seema. when we come back, our david faber sits down with a big name in private equity. scott sperling live from the no labels conference in washington,
where earlier nelson pelt discussed everything from his investments to outsourcing, to donald trump. >> his tax plan, if he gets the kind of tax reductions he's talking about, we will wind up having more employment, more companies coming back to the united states, whether they have gone to ireland or they are still america and they've got their tax shelters in switzerland or holland. at the marine mammal center, the environment is everything.
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hi, everyone, i'm sue herrera, here's your news update this hour. secretary of defense ash carter says the u.s. is satisfied with japan's contribution of the alliance between the two countries. he arrived in japan for meetings with prime minister shinzo abe. >> japan reimburses the united states for a large fraction of those costs and that's good, too, but it shows it's a two-way street, and as i said, the alliance relationship never been stronger than it is now. >> on the transition front, ivanka trump will meet with al gore later today to discuss climate change. tomorrow, donald trump will meet with exxon ceo rex tillerson.
bill de blasio is asking congress for $35 million to cover the cost of protecting president-elect donald trump. there has been very heavy security, as you know, at trump tower where trump has been spending the majority of his time since being elected. you're up to date, that's the news at this hour. back downtown to "squawk alley." carl, back to you. >> thank you very much, sue. let's get back down to david faber live at the no labels conference in washington, d.c., with another special guest. hey, david. >> thanks, carl. yeah, a lot of business people here. as you might expect at a meeting of centrists, including my next guest, scott sperling, frequent guest of ours through the years and somebody i've known for a long time. let's talk about tax reform. it would seem to me it's got important implications for business across the board, but also for private equity, where you play. what are your expectations in terms of what we're going toend up with and what the impact will
be? >> i think the country has voted for change, and the country has voted for big change. and i think as we look at the set of issues that we have, they really focus around a lack of growth over the course of the last really decade that has caused many people not to participate the way that perhaps the top 20% of the country has participated. and one of the key drivers of that is to have in place a set of policies that support strong growth for our economy. and i think tax implication and tax reform, deregulation in a way that is prudent, both will contribute strongly to that level of growth that will be required to really help the people who have been most hurt by the course of the economy over the last eight years. >> i wonder. we don't know specifics of what we're going to end up with, and there's certainly plenty of
fights to come. there's a possibility that interest will no longer be deductible. that's an important part of the private equity business. that's part of some of these plans out here. does that worry you? >> i think when they look at it, they'll say people are paying taxes on the interest they receive, so it's not that deductible interest doesn't generate tax info, because when the people lend the money or receive it are paying taxes on that, so i think it's not clear to me that makes sense to have that be deductible. >> i assume you'd be opposed to that. it's an important part of your business. >> right, but as we look at the big picture, i think what many of us are seeing is the opportunity to put in place a set of policies that can be embraced by democrats and republicans that are really focused on the ability to get this country moving again, and what we need to do is think out of the box. i think that's another signal
that we got from this election, which there is a rejection of business as usual. >> out of the box would be what? >> out of the box would be significant tax implication. significant deregulation while still maintaining the appropriate control to avoid the excesses that we saw back in the middle part of the last decade, but to allow business to grow with a real emphasis on providing jobs for many of the people that can't find them today and the appropriate level of training for many others so we have people that can fill jobs that may have higher technical requirements that currently we don't have. >> which is a key point. you mention jobs and that is a focus of the incoming administration, as it is with every administration. the president-elect has been tweeting about this. i wonder in private equity where often times a company is required and costs are cut, efficiency is introduced and
that can often result in job losses. is that another concern for you? seems job losses may not be allowed to do that anymore. >> with the purposes of growth and one of the things we've seen is there's a role for government, appropriate role for government, and it's not to micromanage businesses in that way. now, i think the signal that the president-elect has sent is that if we put in place a set of policies that allow business to participate in the united states with lower costs, so lower costs of taxes and regulation, you can pay wage rates higher. >> is that a slippery slope? >> i think the key part is to put in place a set of policies that encourage companies to participate and make it attractive for them to be in the united states. we have a great work force, we have a great entrepreneurial climate and environment and, therefore, i think it's a good
place to be, but the burden that companies face often is not the employee wage rate solely, it's actually the very high, highest in the world about, tax rates. it's a regulatory burden that's grown exponentially over the course of the last eight years. so if we change those things, i think we can pay the wage rates people in this country need to have a strong, vibrant middle class, a vibrant middle class that will demand more goods and services. >> more growth. >> i think it all plays together, but we need to make that leap. again, the leap is that we have big problems and we need big answers to it. >> that growth is not going to generate massive deficits. excuse me, the tax cuts. >> you have to belief in dynamic scoring. tough believe that what happened in the early 1960s with john f. kennedy, in the '80s with ronald
reagan and in the '90s with bill clinton, two of the three democrats, by the way, where there were a set of policies put in place that are not dissimilar with what the trump administration or incoming administration seem to be proposing. and those policies of tax implication/reduction and deregulation have led to significant growth in the economy, such as tax receipts actually make up for the change. >> real quickly, we're out of time. we didn't talk at all about private equity. you've been so focused on exits as opposed to buying things. is that the environment we'll continue in? >> it's been a great time for exits. we've been generating a lot for investors. at the same time, we put in place a very large organization whose purpose it is to find really interesting deals. they tend to be, i mentioned to you, somewhat smaller than the companies we're selling, but we're being able to buy those at multiples that really give us the ability to see some multiple
expansion, if we can make those businesses grow. so all of our effort is in making them more efficient, making them better competitors, and looking for ways to grow a business so that if you buy it at eight and a half times, someone is willing to pay you 13 times for it. >> that's how it's supposed to work on paper. as always, appreciate it. scott sperling. carl, back to you. >> thanks so much. whether we come back, while amazon tries to get rid of registers with the launch of amazon go, another company is trying to revolutionize them. details on that coming up. dow is up 73. rick santelli, what are you watching today? >> well, i'm watching the strength in the euro versus dollar. that's interesting post renzi referendum, but i'm also looking at the check engine light on the economy. it's flashing. it's actually maybe going off. so we're going to do a compression test. you'll see what i mean after the break. i've invested a lot in this game
coming up today on the half-time report, hunt for stocks that lagged the trump rally. plus, chief strategist on whether the rally will die or thrive in 2017 once donald trump actually takes office. and why one of our traders just bought a stock up 18% in a month and is very confident that you should too. all top of the hour on the half-time report. kayla, see you in about 20. >> thanks, scott, see you then. apple confirming for the first time it is, in fact,
interested in self-driving technology. in a newly released letter from apple's director of product integrity to the national highway traffic safety administration, apple says it is, quote, investing heavily in machine learning and automation for many purposes, including transportation. the letter is dated november 22nd and was just one of more than 1,000 sent to the agency by companies like alphabet and general motors as it considers new regulations for driver-less vehicles. it's been a poorly kept secret apple has been interested in this industry for some time, but what do you make of the fact apple is actually laying it out there, at least to regulators, and do you think it's just a software component and not necessarily building the car itself? >> i'm not sure apple knows that at this point. you always have to be careful about reading too much into these tea leaves from apple. i remember when we were speculating about the iphone in early mid 2000s and people had the mock ups of what it was going to look like, what the keyboard, physical keyboard, was
going to look like, how there would be a scroll wheel like the ipod. none of that came to pass. part of apple's process has been trying out different versions and prototypes. i imagine they are looking at building a car, not building a car, and we might not know until just before, but this is an important step. apple is very gingerly approaching areas that require regulation. they don't like to go into those areas. they like free access, but if they do cars, not an option. >> going into an environment regulation appears to be not such a big deal. we'll find out how much lobbying power they'll need. meanwhile, let's get to chicago and rick santelli and the santelli exchange. rick? >> thank you, carl. a lot going on in the marketplace. let's start with something simple. we had one data point today of note and that was the ism november for nonmanufacture. i want to draw a note that 57.2 read was the best of the year and indeed the best going back to october of 2015.
we want to pay attention as we assess a baseline economic activity before, of course, the president-elect is sworn in and brings fiscal gasoline to the equation. also renzi referendum. we've talked many times on the euro versus the dollar. let's look at a chart of how it behaved. notice what the low is. can't make this stuff up. 95-sorry, 105.06. let's go to the chart we've used dozens of times. that chart clearly shows 105 is a very key level. the fact it held and had a big reversal might be a nice window for the fed to take advantage of as they are always fearful of rate rise with respect to the exports and multinationals. finally, you know, it was last week when we talked about the yield curve and how it may be steeper, how that is the fear trade and you can steepen or flatten whether the rates go up
or down. we're going to follow up on that. first of all, remember when you were a kid and you all grabbed hands, six, seven, eight people on ice skates? well, who had the wildest ride? it was the person on the end, the whip effect, okay, that's kind of like duration sensitivity in the long end, whole lot more than the short end. why is this important? we've also talked about how things like fed policy, quantitative easing, securities and storage, all of that has made the best, the best fixed income securities very tough to find in terms of good collateral. well, insurance companies, pension funds, what did they have to do to make up for that? that's called compression. when you have a check engine light on, many times one of the areas you check is the cylinder compression to see the health of the engine. it's exactly the opposite now. what's going on now is check engine light is flickering, maybe things are getting better. this compression could come and give more fuel to the rapid
increase possibilities of rates, and, hence, maybe a steeper yield curve. why? because if you're an insurance company, you need x amount of money, you buy more security. and that compression as it unravels as securities go up, maybe something to pay very close attention to. kayla, john, carl, back to you. >> all right, thank you, rick. and still to come, how one company is trying to revolutionize the cash register, even as amazon is trying to kill it off. we'll be right back. ♪ ♪ is it a force of nature? or a sales event? the season of audi sales event is here. audi will cover your first month's lease payment on select models during the season of audi sales event.
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amazon announcing today it's launching a physical store concept, amazon go, that won't include cash registers. for more on the future of digital payments, lisa, ceo at rebel systems, which helps companies take a different approach to payments. lisa, welcome. >> thank you, great to be here. >> so tell me how revel is different from square and the vision that you have for smaller businesses to push further into this digital age in checkout. >> yeah, sure, so revel systems is the next generation point of sale, which is really like a mini s.a.p. for your business.
we do inventory, purchase orders, tons of analytics and focus on high volume single store locations and chains and franchises. >> so, given that, is data really the most important part, you know, for you >> i didn't hear you quite correctly. is beta? >> data -- >> oh, data. yes, yes, absolutely. data and analytics is really, really key. again, the way to think about us is, yes, we do the register part of it, but really we're like a minis.a.p. for your business. we're the central nervous system of the business, so we really run your business. data, analytics, all of that is super key to what we do where. >> what's difference about you to some of your rivals they make most of their money from a percentage fee that they charge on each transaction. you guys only charge for the register itself. why did you decide to choose
that business model and will that keep you from having a diversified revenue model going forward? >> correct, yes. we are a software as a service platform, so we charge a monthly fee, unlike square. we're not a payments company. we're a software as a service company. again, going back to what you guys were saying about the data, aboutnalytics, that's what we focus on. >> as far as brand loyalty goes, i know you have some thoughts on whether or not it's more powerful for a consumer to shop on a certain website or to actually have to go into a physical store. what's the difference? >> what's the difference between going on a website versus a physical store? >> yeah. >> they're all becoming one, right? you see web sites. you see, you know, amazon is opening up brick and mortar shops. you see -- you know, you see brick and mortars going on-line, and we are about the omni cello approach. we offer on-line and in store presence. it's all becoming one. >> lisa, do you expect amazon to
perhaps get into this space on the logistics end? they have fulfillment by amazon. if they're moving into store concepts, we know they're trying to connect with local businesses. they could very easily offer their systems to the business for a fee, for a cut the way they have with logistics. do you expect that? if so, how does a company like yours react? >> i think it would be much better off partnering with us. a real true point of sale is very, very difficult to do. there's a lot that goes into it. it's much better to partner with someone that focuses on it rather than just doing it. it's easy to create a register type product. it's easy to create a payment product, but it's really difficult to create a true point of sale. something that really runs your business. >> it's also difficult -- >> six years behind us. >> it's also difficult to launch rockets into space, but that's not stopping b abazos. how do you adjust if somebody of your that size gets into your
space? >> yeah. i mean, we're always ahead of the curve, right? i mean, we're two years ahead of everyone else, so be we move faster. we move quicker. we're more agile, and we would actually partner with an amazon of the world rather than compete with them. >> it's the time of year where everybody is buying stuff, so certainly top of mind. our thanks, lisa falzone of rebel. when we come back, listen to what google's co-founder and alphabet president sergei brin said about his hopes for the president-elect and his relationship with tech. >> people have to see what the policies of the new administration are. i mean, there have definitely been lots of rumors here and there and shift and so forth. i think we'll have to see what those policies are. i certainly hope they will be pro-science, pro-technology, and all of the things that this world has really benefitted from.
they may want the latest products and services, but they demand the best shopping experiences. they're your customers. and by blending physical with digital, cognizant is helping 8 of the 10 largest u.s. retailers meet their demands with more responsive retail models... ones that transcend channels and locations, anticipate expectations... creating new ways to engage at every imaginable touch-point. it's a new day in retail, and together, we're building the store of the future. digital works for retail. let's talk about how digital works for your business. before the band separated over unknown creative differences. [ crash ] and reunited three decades later for a tour that sold out in three minutes. and your cisco hybrid cloud handled millions of ticket orders without breaking a sweat. before all of this, [ crash ] the experts at cdw orchestrated a cisco hybrid cloud solution. scalability by cisco. orchestration by cdw.
though. that's not particularly free market, is it? >> i am a free market guy, but i think the scales have been shifted too much. i really do. i am a free market guy. i believe in globalization. i don't believe in tariffs for tariff's sake. >> that's nelson peltz this morning talking to david faber this morning. a new mystery position, which he would not budge on, but also talking about this line between letting capital flow wherever it wants to without inhibitors or in his view scales that have shifted too much. whether or not we need a president who is going to use words like retribution and consequences. >> interesting to hear his thoughts not only from an investor's viewpoint, but someone who has known donald trump. david asked him about their conversations, what they had discussed, where nelson peltz's optimism is coming from, and he seemed optimistic about tax reform. i thought it was interesting. they talked about oreos and the boycott and president-elect
trump likes oreos now. that scuttle has ended. >> it's interesting to see where different people draw the line between what a pro-business president and an anti--business president looks like. if these types of statements about restricting global trade have come from someone else other than donald trump, one wonder if they would be received the same way. one wonder if the market is ready, in fact, for what a president trump will do. i mean, who knows? the oreos thing gone the other way. carrier. people have lots of different views on that, but eventually the rubber meets the road, and we have an economy that's going to runway way or another. >> i thought the hour was started by saying i basically ignore all and i'm going to wait to see what actual policies hit the ground when all of this sort of talk and tweets and bluster is over with. there's the business side of this. then there's sort of the other side. for instance, early twitter investor chris saka talking about the president-elect's use of twitter. take a listen. >> well, it's one thing tobacco sesible on social media. it's another thing to be reckless.
on our way here tonight i saw the president-elect trolling china. literally picking a fight that could lead to a big international dispute with 140 characters at a time. that scares the hell out of me. >> of course, donald trump this morning tweeting if the press would cover me accurately and honorably, i would have far less reason to tweet. sadly i don't know if that will ever happen. i said on twitter that twitter hopes he keeps tweeting because 16 million viewers drive engagement. zroo there's a missed opportunity in the business model. if they had figured out a way to charge for retweets or for emotion generated from tweets, oh, my goodness, they would have a donald trump windfall happening right now. >> but he has certainly created a situation where his future secretary of state has his own work cut out for them. >> yes. because you don't know when the -- who the boss is going to talk to. meanwhile, dow is up 75. in a pretty tight range as you probably know. oil hanging on to 52. the week is going to get interesting. not a lot of macrocoming our
way, but we'll get earnings like costco and lulu, restoration hardware, seena later in the week. still watching these banks and the transports coming up off 41% gain from the low of the year. >> incredible. >> we're also going to watch currencies too. >> let's get to headquarters and the half. >> thanks, guys. i'm scott wapner, and our top trade this hour is a risk and a reward of the trump rally as the dow sets yet another record high. with us for the hour today, joe tear teranova and -- also debracos lecos, a chief investment strategist at jp morgan. stocks higher yet again. that vote in italy over the weekend not enough to disrupt the record run. i would turn to you and ask what, if